Boost for buy-to-let landlords
19 April 2004
Buy-to-let landlords enjoyed a rise in the value of their property and the rent they charged during March, new figures revealed this week.
According to Paragon Mortgages, the rents charged by investment landlords rose by 6 per cent for the 12 months to the end of March to average £9,651 a year, while property prices rose by 4.5 per cent during the month to average £133,658.
But despite the increase in prices, returns on a property increased to 7.22 per cent of its value, up from 7.12 per cent in March, reversing the downward trend seen during the past six months.
John Heron, managing director of Paragon Mortgages, said: "With demand for rented accommodation from tenants steady or growing in many areas, landlords have been able to achieve higher rental yields, notwithstanding the continued rises in property values we've been seeing recently."
But he added that while landlords were often able to negotiate more attractive prices than people buying a home to live in, even they were having to pay more for properties.